A subsidiary of EnLink Midstream Partners LP and EnLink Midstream LLC and an affiliate of NGP Natural Resources XI LP have formed a strategic joint venture to operate and expand midstream assets for natural gas, NGLs, and crude oil in the liquids-rich Delaware basin.
Already anchored by long-term, fee-based commitments from major producers, the new Lobo II expansion include installation of a 120-MMcfd cryogenic natural gas processing plant, as well as associated natural gas and liquids-gathering pipeline infrastructure, in Loving County, Tex., and Eddy and Lea Counties, NM, EnLink said.
The expansion will build off EnLink’s existing Lobo gathering and processing system, which it acquired from Matador Resources Co. in October 2015, the company said.
Upon completion of Lobo II, the Delaware basin facility will have a total processing capacity of about 155 MMcfd, according to EnLink, which will serve as the JV’s managing member and handle day-to-day construction and operation of the assets.
The Lobo II expansion is due for startup by yearend, EnLink said.
EnLink, which contributed about $230 million of its Delaware basin assets an additional $285 million to fund potential future development projects and potential acquisitions, will hold a 50.1% interest in the JV, with NGP to hold the remaining 49.9% stake for its aggregate capital contribution of $400 million.
Contact Robert Brelsford at [email protected].